Posted this earlier but the answer i got was wrong.Can some one show me how to get the right answer.Thanks
Amanda Webb opened a home health care business under the name Home Care, Inc. During its first month of operations, the business had the following transactions: Sold common stock to Ms. Webb and other stockholders in exchange for $30,000 cash Paid $18,500 cash for a parcel of land on which the business will eventually build an office building Purchased supplies for $2,750 on credit Used the supplies purchased in part (c). Paid rent for the month on office space and equipment, $800 cash Performed services for clients in exchange for $3,910 cash Paid salaries for the month, $1,100 Purchased and used $650 of supplies Paid $1,900 on account for supplies purchased in transaction c Performed services for clients on credit in the amount of $1,050 Paid a $600 dividend to stockholders
Prepare an analysis of the effects of these transactions on the accounting equation of the business. Use the format below. If an amount box does not require an entry, leave the cell blank or enter zero (“0”). Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item (i.e. Asset, Liability), enter “0” since the net effect on the item is zero. Assets = Liabilities + Stockholders' Equity Contributed
Earnings a. b. c. d. e. f. g. h. i. j. k.
During December, Cynthiana Refrigeration Service engaged in the following transactions: On December 3, Cynthiana sold a one-year service contract to Cub Foods for $13,000 cash. On December 10, Cynthiana repaired equipment of the A&W Root Beer Drive-In. A&W paid $1,300 in cash for the service call. On December 10, Cynthiana purchased a new Chevy truck for business use. The truck cost $35,500. Cynthiana paid $6,500 down and signed a one-year note for the balance. Cynthiana received an $3,200 order of repair parts from Carrier Corporation on December 19. Carrier is expected to bill Cynthiana for $3,200 in early January. On December 23, Cynthiana purchased 20 turkeys from Cub Foods for $200 cash. Cynthiana gave the turkeys to its employees as a Christmas gift.
For each transaction described above, identify the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, please, leave the cells blank or enter zero (“0”). Enter decreases in account values as negative numbers. If an item (i.e. Assets, Liabilities) is both increased and decreased by a transaction, enter the net effect of the transaction on the item. Assets = Liabilities + Stockholders' Equity Contributed
Earnings a. b. c. d. e.